System and method for wagering in a financial market environment

ABSTRACT

A method for providing a wager in a financial market environment is provided that includes presenting an opportunity to make a wager that is based on a moving market line associated with a financial market. An end user is given an opportunity to bet on whether a financial market value will be above or below the moving market line at a designated time. The wager may be accepted from the end user. The wager may be monitored in order to determine whether the financial market value was above or below the moving market line at the designated time.

TECHNICAL FIELD OF THE INVENTION

This invention relates in general to gaming and, more particularly, to asystem and a method for wagering in a financial market environment.

BACKGROUND OF THE INVENTION

The gaming industry has experienced a tremendous increase in popularityover the last few decades. Excitement is generally derived from theexpectation of potential future winnings based on the movements of theunderlying event of the wager. Concurrently, in the financial market adifferent group of participants engage in allocating money based on thelikelihood of some future event. Such participants (or investors) maypurchase commodities (e.g. common stock through a trading exchange) inhopes that their purchases will appreciate with time. When the investorelects to close or sell his position, a profit may be obtained in caseswhere the underlying asset has grown in value.

Investors are also given the opportunity in today's trading markets topurchase equities that track a particular type of stock, sector, orexchange. For example, an investor may take a position in a stock thattracks the performance of semiconductors, cyclicals, or small-cap stocks(e.g. the Russell 2000). In another example, investors are given theopportunity to purchase a stock that tracks the performance the NASDAQexchange (e.g. stock ticker symbol ‘QQQ’). Gains or losses in the NASDAQare, therefore, reflected by the tracking stock.

Investors may use any number of theories in order to develop ahypothesis for taking a position in such stocks. For example, becausethe NASDAQ is heavily weighted toward technology, an investor who feelsthat the technology sector is due for a rally may opt to take a positionin the tracking stock of the NASDAQ. Other investors may use a technicalanalysis (considering factors such as momentum, volume, and performancegraphs) to determine whether or not such an investment would produce aprofit. Still other investors may use interest rates, bond prices, orany other appropriate factor as a basis for making such determinations.Alternatively, some investors may simply allocate capital based on pureguesswork and hunches. Accordingly, such a forum offers the opportunityfor great speculation amongst participants, as any number of factors andtheories may be implemented in an attempt to predict the futureperformance of an underlying asset.

SUMMARY OF THE INVENTION

From the foregoing, it may be appreciated by those skilled in the artthat a need has arisen for an improved gaming instrument that providesfor enhanced flexibility and improved wagering opportunities forparticipating customers and clients. In accordance with an embodiment ofthe present invention, a system and a method for wagering in a financialmarket environment are provided that substantially eliminate or greatlyreduce disadvantages and problems associated with conventional gaming orinvestment approaches and instruments.

According to an embodiment of the present invention, a method forwagering in a financial market environment is provided that includespresenting an opportunity to make a wager that is based on a movingmarket line associated with a financial market. An end user is given anopportunity to bet on whether a financial market value will be above orbelow the moving market line at a designated time. The wager may beaccepted from the end user. The wager may be monitored in order todetermine whether the financial market value was above or below themoving market line at the designated time.

According to another embodiment of the present invention, a method fordetermining odds for a wager in a financial market environment isprovided that includes generating market line odds associated with awager, the market line odds for the wager being based on, at least, avolatility factor, a time factor, and a market line associated with afinancial market. The market line odds may be provided to an end userinterested in participating in the wager. The end user is given anopportunity to bet on whether a financial market value will be above orbelow the market line at a designated time. The wager may be settledbased on the market line odds after the designated time in order toresolve whether the end user is entitled to a credit or a debit.

In yet another embodiment of the present invention, a method ofproviding multiple wagering opportunities in a financial marketenvironment is provided that includes offering a first and a secondwager that are each based on a moving market line associated with afinancial market. The first wager is associated with a rise in afinancial market value such that it will be above the moving market lineat a first designated time interval within a trading session associatedwith the financial market, the second wager being associated with adecline in the financial market value such that it will be below themoving market line at a second designated time interval within thetrading session. A selected one or both of the wagers may be acceptedfrom one or more end users. The wagers may be monitored in order todetermine whether the financial market was above or below the movingmarket line.

In a more particular embodiment of the invention, a third and a fourthwager are offered that are each based on a high line that corresponds toan increase in the moving market line. The third wager is associatedwith a rise in the financial market value such that it will be above thehigh line at a third designated time interval within the trading sessionassociated with the financial market value, the fourth wager beingassociated with the financial market value being below the high line ata fourth designated time interval within the trading session.

In addition, a fifth and a sixth wager may be offered that are eachbased on a low line that corresponds to a decrease in the moving marketline. The fifth wager is associated with a decline in the financialmarket value such that it will be below the low line at a fifthdesignated time interval within the trading session, the sixth wagerbeing associated with the financial market value being above the lowline at a sixth designated time interval within the trading session.

Additionally, a seventh and an eighth wager may be offered that are eachbased on a spread line that corresponds to a derivation above and belowthe moving market line. The seventh wager is associated with thefinancial market value being below the spread line at a seventhdesignated time interval within the trading session, the eighth wagerbeing associated with the financial market value being above the spreadline at an eighth designated time interval within the trading session.

Certain embodiments of the present invention may provide a number oftechnical advantages. For example, according to one embodiment of thepresent invention, a gaming instrument is provided that allows potentialinvestors or bettors to participate in betting on the movement offinancial markets. The existence of a dynamic instrument, which offers amoving line variable for the placed bet, provides an opportunity forinvestors and gamers to bet on a number of potential fluctuations in anunderlying market. Accordingly, clients may bet that the market willclose above or below the moving line value and also enjoy additionalbetting opportunities where they may bet that the market will closeabove or below predetermined levels that are (for example) circa 1%above and below the actual market value.

In addition, the value of a financial transaction may now be wageredaccording to odds that are dynamically determined based on theunderlying market levels and any additional data that may be relevant oruseful in making such a determination. Included in the current wageringarchitecture is a spread around the current market value (i.e. themoving middle market value line). The spread may offer odds that arebetter than those relating to the non-spread market lines and, further,could be provided with even money odds. Such a wagering system may beimplemented in cooperation with any number of securities and exchangesthat experience any degree of movement.

Yet another advantage of an embodiment of the present invention is anaugmentation in betting opportunities as a result of the use of multipleintraday expiries. This characteristic offers an even greater selectionfor a potential participant in the gaming system. Certain bets mayinclude a daily expiry or be provided with weekly and quarterlyexpiries. Other bets could extend to minute-by-minute expiries. On thisbasis, customers, investors, and clients could have the opportunity tobet on multiple occasions throughout the course of the trading day.Thus, in its least ambitious state, the financial markets now become afoundation for regular intraday betting activity in the same way thathorseracing and other sportsbook events present multiple daily bettingopportunities (e.g. a bet expiry every half hour throughout the day) foran end user.

Certain embodiments of the present invention may enjoy some, all, ornone of these advantages. Other technical advantages may be readilyapparent to one skilled in the art from the following figures,description, and claims.

BRIEF DESCRIPTION OF THE DRAWINGS

To provide a more complete understanding of the present invention andfeatures and advantages thereof, reference is made to the followingdescription, taken in conjunction with the accompanying figures, whereinlike reference numerals represent like parts, in which:

FIG. 1 is a simplified block diagram of a gaming system for wagering ina financial market environment in accordance with an embodiment of thepresent invention;

FIG. 2 is a simplified schematic diagram of an example screen page thatmay be included in the gaming system;

FIG. 3 is a simplified block diagram of a central controller that may beincluded within the gaming system; and

FIG. 4 is a flowchart illustrating a series of example steps associatedwith a method for wagering in a financial market environment.

DETAILED DESCRIPTION

FIG. 1 is a simplified block diagram of a gaming system 10 that offersan opportunity for wagers to be placed in a financial marketenvironment. Gaming system 10 comprises multiple end users 12, a userinterface 16, a communications network 18, and a central controller 40.Gaming system 10 may also include an administrator module 50 and afinancial market data element 60. User interface 16 may include a numberof elements that offer connectivity for one or more end users 12 toother elements within gaming system 10. These elements may include anInternet 20, a wireless element 22, a casino facility 24, a television(or display) 28, and a broker 30. Central controller 40 may include aprocessor 42 and a memory element 44.

In accordance with the teachings of the present invention, gaming system10 provides increased flexibility and improved opportunities fordiversification in wagering in a number of financial markets. Gamingsystem 10 offers financial odds for moving line markets and, further, iscapable of providing bets that include multiple intraday expiries.Gaming system 10 further offers a pricing engine that is operable todetermine: 1) a set of moving fixed odds around static market lines; 2)a correct moving market line in relation to static odds; and 3) anability to receive betting information in order to display liabilitymanagement in relation to the financial fixed odds betting activity.

Some financial products may display odds around a static line that willbe unchanged throughout the trading day. In contrast to sucharchitectures, gaming system 10 offers a wagering platform that iscapable of offering bets associated with a dynamic market, where themarket line is a reflection of the current market levels. The marketline may move constantly throughout a given trading day and reflectunderlying market shifts and movements.

A given end user 12 may bet that a selected market (e.g. the FTSE) willclose at a value that is above or below the moving line value. End users12 may also enjoy additional betting opportunities based on the theorythat the market will close above or below levels that are (for example)approximately 1% above or below the actual market value. Thus, gamingsystem 10 may include a spread around the current market value (i.e. themoving middle market value line), whereby the spread includes odds thatare better (from the perspective of the bettor) than those relating tothe non-spread market line. Such odds may be effectively even, asopposed to (for example) 10/11 type odds.

Daily expiries, as well as other intraday and longer-term expiries, mayalso be accommodated by gaming system 10. Bets may be placed in anysuitable financial market, such as the FTSE, the German DAX, the FrenchCAC, the NASDAQ, the American Exchange (AMEX), the New York StockExchange, the Nikkei, the bond or treasury markets, and the Hang SengIndex, for example. Thus, gaming system 10 may facilitate frequent betexpiries in relation to any number of suitable financial instruments.Bets could also extend to minute-by-minute or thirty-second expiries. Onthis basis, end users 12 can have the opportunity to bet on multipleevents/scenarios throughout the trading day. Accordingly, a targetedfinancial market can represent a foundation for regular intraday bettingactivity.

Other example applications may include provisions for a bet expiry everyfive minutes throughout market hours (and readily extended toaccommodate defined future time frames). In an example scenario, whereit is assumed that an expiry is present every five minutes, thenwagering opportunities could be defined for the FTSE market (in GMTtimes) as follows: (Opening Bell) 10.00 am, 10.05 am, 10.10 am, 10.15am, etc. and continuing to 17.05, 17.10, 17.15, 17.20 (Closing Bell).

Clients seeking to place bets could do so and specify an expiry thatthey have elected. This will probably be the imminent forthcomingexpiry, but later ones can also be easily accommodated. Hence, a clientin a betting shop or in an on-line environment has a betting opportunityevery minute throughout the day. Settlement could subsequently followthe bet expiry in any suitable manner (e.g. immediately without delayafter the expiration).

A further capability provided by gaming system 10 is the provision for anon-time specified expiry. In such a scenario, a bet expires at adefined delay from the moment the bet was struck. This would allow enduser 12 to place a bet at any time throughout the day knowing that thebet, which was placed, will expire (for instance) five minutes after thebet was placed (e.g. a bet placed at 12.07 and 35 seconds: bet settledat 12.12 and 35 seconds). Thus, bets would not necessarily expire forall participants at nominated intervals, but instead expire on a definedpost (i.e. delayed) basis.

Another capability that flows from the arrangement of gaming system 10is that sophisticated participants would be able to continually adjusttheir overall risk participation or exposure: for instance, by bettingone way in an individual transaction and taking the opposite positionwith respect to the outcomes of a plurality of other events. Forexample, a participant might first wager that the NASDAQ will appreciatein price, but also take a short position in the Russell 2000. Such ablended risk-participation strategy allows participants to effectivelybalance or hedge their wagers and their betting portfolio in a mannersimilar to an investor hedging an investment portfolio by offsettingtrading in the underlying securities.

End users 12 are clients, customers, prospective investors, or entitieswishing to place a wager. End users 12 may also seek to access or toinitiate a communication with user interface 16 that may be deliveredvia communications network 18. End users 12 may review data (such asperformance characteristics) associated with a particular market inorder to take a position (place a wager) in any given financial target.Alternatively, end users 12 may represent any device or object thatseeks to initiate a communication on behalf of another entity orelement, such as a program, a database, or any other component, device,element, or object capable of initiating a voice or a data exchangewithin gaming system 10. Data, as used herein in this document, refersto any type of numeric, voice, or script data, or any other suitableinformation in any appropriate format that may be communicated from onepoint to another.

End user 12 may participate in a wager, which represents the legalinstrument that may be used to bind end user 12 to a stipulatedagreement. A wager may take any appropriate form such as a writtendocument, an e-mail, a facsimile message, a computer display, an entryin an account, or a verbal agreement between two parties. Such a wageris flexible in its terms, representations, and stipulations. In general,any information or data that may be germane or of interest to a bettingparticipant or a hosting entity may be included in a wager, providedthat the included terms are mutually agreeable to the two (or more)parties bound by the wager.

User interface 16 is an architecture that facilitates wagering on aselected financial market. User interface 16 is operable to receive andto process requests associated with transactions relating to a wager.User interface 16 provides a portal for end users 12 to access otherelements of gaming system 10. User interface 16 may be a computer, aserver, a management center, a single workstation, or a headquarteringoffice for any person, business, or entity that seeks to manage orfacilitate wagering activity. Accordingly, user interface 16 may includeany suitable hardware, software, personnel, devices, components,elements, or objects that may be utilized or implemented to achieve suchoperations and functions in a gaming environment.

In one example embodiment used for purposes of teaching only, userinterface 16 comprises any one or more of a selection of elements thatincludes Internet 20, wireless element 22, casino facility 24,television 28 (e.g., cable, satellite, closed-circuit, etc.), and broker30. Any suitable number and combination of interfaces may be implementedin gaming system 10 according to usage, traffic, architecture, and otherconsiderations.

Alternatively, user interface 16 (and the examples thereof) may bereplaced with any other suitable interface or object that facilitatescommunications between end user 12 and any other element within gamingsystem 10, such as: a cellular telephone, an electronic notebook, apersonal digital assistant (PDA), or any other suitable device (wirelessor otherwise), component, or element capable of accessing one or moreelements within gaming system 10. The end user interface may alsocomprise any suitable interface for a human user such as a display, amicrophone, a keyboard, or any other appropriate terminal equipmentaccording to particular configurations and arrangements. In addition,the end user interface may be a unique element designed specifically forcommunications involving a wager. Such an element may be fabricated orproduced specifically for financial applications involving end user 12.

User interface 16 may be owned and operated by any suitable entityhaving the ability and/or authority to operate in the gaming industry. Adirect connection may be present between user interface 16 and any otherfinancial exchange, whereby information associated with the exchange isdelivered to end user 12 and may be reviewed before executing thetransaction. Thus, user interface 16 may deliver real-time financialdata to end user 12 in order to provide pertinent financial informationto be used to make decisions as to whether to purchase or to sell awager. This financial information may be retrieved from financial marketdata element 60 or any other suitable element, such as the directconnection described above. Financial market data element 60 may relaydata, such as pricing information, market lines, maturity data,financial graphs and charts, historical quotes, or moving averages, forexample, to end users 12. Other pertinent financial data may also bereadily delivered and based on particular needs. In order to deliverinformation that is accurate and timely, financial market data element60 may be coupled directly to a corresponding exchange communicationslink that carries such financial data. Alternatively, financial marketdata element 60 may gather such critical information from anyappropriate location (e.g. a news wire or a server operable to deliverreal-time information to investors) such that the desired data isdelivered to end user 12.

User interface 16 may also include one or more self-service bettingmachines. In some embodiments, self-service betting machines allow endusers 12 to insert payment into a machine (such as cash or by using avoucher or a credit/debit card), place one or more bets, and receive aprintout (such as a ticket, for example) confirming that the bet wasplaced. Printouts for winning bets may be inserted back into theself-service betting machine to receive a payment or a voucher (whichmay be used to receive a payout from a teller). In other embodiments,self-service betting machines allow end users 12 to use a credit card, adebit card, or a smart card to place bets. The credit or debit card mayhave an associated account, which may be a betting account providedand/or managed by a betting account provider using, for example, acentralized computer system. The account may also be stored in anend-user profile, such as that which is described below with referenceto FIG. 3. The smart card may itself store information regarding abetting account and various bets. In some embodiments, after theexpiration of the bet, end user 12 may insert or swipe his or hercredit, debit, or smart card in the self-service betting machines inorder to update the balance on the card.

User interfaces 16 may also include various non-physical interfaces,such as one or more telephone operators and one or more websites. Endusers 12 may access or communicate with such non-physical interfaces inany appropriate manner. Telephone operators may communicate bettinginformation to, and take bets from, end users 12. Similarly, websitesmay communicate betting information to end users 12 and allow end users12 to place bets. One or more of such websites may be hosted by one ormore servers associated with an owner or operator of gaming system 10.The Internet betting provider may provide Internet account wagering byproviding online betting accounts to one or more end users 12. Using anonline betting account, a client may interface with one or more websitesassociated with the Internet betting provider in order to fund theaccount, view betting information regarding betting events (e.g. odds),and place bets. Such online betting accounts may include one or morevarious types of accounts, such as deposit accounts, credit accounts,margin accounts, stop-loss accounts, and hybrid accounts, for example.Such accounts may be stored in an end-user profile (as illustrated inFIG. 3).

Communications network 18 is a communicative platform operable toexchange data or information between end user 12 and user interface 16.Communications network 18 represents an Internet architecture in aparticular embodiment of the present invention, which provides end user12 with the ability to electronically execute or initiate transactionsassociated with a wager. Alternatively, communications network 18 couldbe a plain old telephone system (POTS), which end user 12 could use toperform the same operations or functions. Such transactions may beassisted by broker 30 associated with user interface 16 or manuallykeyed into a telephone or other suitable electronic equipment in orderto request that a transaction be executed. In other embodiments,communications network 18 could be any packet data network (PDN)offering a communications interface or exchange between any two nodes ingaming system 10. Communications network 18 may alternatively be anylocal area network (LAN), metropolitan area network (MAN), wide areanetwork (WAN), wireless local area network (WLAN), virtual privatenetwork (VPN), intranet, or any other appropriate architecture or systemthat facilitates communications in a network or telephonic environment.

Central controller 40 includes processor 42 and memory element 44 inaccordance with one example embodiment of the present invention. Centralcontroller 40 is operable to receive requests from end user 12 and toprocess those requests such that financial transactions involving awager are executed. The resultant wager that is generated may besuitably stored in memory element 44 after being properly managed andsecured by processor 42. Processor 42 may also assist in processing anyfinancial terms or conditions (e.g. desired expiration, type ofexchange, odds parameters, etc.) requested by end user 12. In caseswhere central controller 40 is unable to match the requested financialparameters or tendered wager terms provided by end user 12 with thatwhich is available in the market place, central controller 40 maycontact end user 12 and notify end user 12 of the circumstancessurrounding the inability to fulfill such a wager.

Processor 42 may comprise any suitable processor that executes a bettingsystem application or other computer instructions that facilitatewagering. Processor 42 may be a CPU or a microprocessor and include anysuitable number of processors working together. Processor 42 isgenerally operable to execute various algorithms, computations, orcalculations to determine current bet data (such as bet amounts),betting odds and/or potential payout data. Processor 42 may determinesuch current bet data based on data received from memory element 44and/or financial market data element 60. In addition, processor 42 mayupdate such current bet data based on new information being receivedfrom financial market data element 60. In some embodiments, processor 42may update current bet data in real-time, substantially in real-time, orat preset intervals (such as every thirty-five seconds, for example). Inaddition, processor 42 may perform the operations described herein toestablish wagering odds. In other embodiments, odds are determinedexternal to gaming system 10 and simply fed to central controller 40from an external link.

Memory element 44 may comprise one or more memory devices thatfacilitate wagering (or that store information relating thereto), suchas one or more random access memories (RAMs), read-only memories (ROMs),dynamic random access memories (DRAMs), fast cycle RAMs (FCRAMs), staticRAM (SRAMs), field-programmable gate arrays (FPGAS), erasableprogrammable read-only memories (EPROMs), electrically erasableprogrammable read-only memories (EEPROMs), microcontrollers, ormicroprocessors. Memory element 44 is also generally operable to storedata that may be used by processor 42 in determining odds and/orpayouts.

It should be noted that the internal structure of central controller 40is malleable and can be readily changed, modified, rearranged, orreconfigured in order to achieve its intended operations. Accordingly,central controller 40 may be equipped with any suitable component,device, application specific integrated circuit (ASIC), hardware,software, processor, algorithm, ROM element, RAM element, EPROM, EEPROM,or any other suitable object that is operable to facilitate theoperations of central controller 40. Considerable flexibility isprovided by the structure of central controller 40 in the context ofgaming system 10.

In an alternative embodiment, user interface 16, communications network18, and/or central controller 40 may be replaced entirely or partiallywith a person, providing a human interface between end user 12 and awager involving a financial market. In such an embodiment, an agent ofuser interface 16 (or any other suitable person or representative) maybe contacted by end user 12 (e.g. via the telephone, a network, othersuitable electronic equipment, or directly by word of mouth). The agentor representative may receive a request from end user 12 to execute sometransaction involving a wager. The agent or representative may thenproxy or broker the request to an appropriate entity for execution ofthe wager. The agent or representative may then record the transactiononce it has been consummated and subsequently contact end user 12 toconfirm that the transaction has been executed. A receipt (of anysuitable type) may then be issued to end user 12 indicating the terms ofa wager. Additional details relating to the internal structure ofcentral controller 40 are provided below with reference to FIG. 3.

Administrator module 50 is an element that cooperates with centralcontroller 40 in order to ensure a fair and proper execution of wageringtransactions initiated by end user 12. Administrator module 50 is anoptional component of gaming system 10. Administrator module 50 may beused in certain embodiments to control any operation of centralcontroller 40. For example, administrator module 50 may be used tomanually set betting odds, to approve margin requests, or to haltspecific wagering activities. In selected instances, administratormodule 50 may call for additional margins throughout the day withoutwaiting for a routine end-of-day settlement. In still other scenarios,administrator module 50 may be used for more simplistic monitoringfunctions.

FIG. 2 is a simplified schematic diagram of an example screen page 70 inaccordance with an embodiment of the present invention. Screen page 70illustrates an opportunity for end user 12 to bet on whether selectedmarkets will expire above or below defined market levels. The associatedexpirations can be variable. In an example scenario used for purposes ofteaching and example, the expiry is daily at the market closing bell.

In the example of FIG. 2, eight betting opportunities are offered,whereby the web page represents bets that relate to one specificfinancial instrument. The eight available bets are based on theopportunity to bet that the specified market will close above or belowfour separately defined levels. A list 72 allows end user 12 to accessany given exchange in order to place a potential bet associated with agiven market line.

In an example embodiment, screen page 70 includes a high line, thecurrent market line, and a low line for the FTSE. The high line is aconstantly moving market level: about 1% of the market value above thecurrent market level in this example. Note that in more volatile markets(or based on particular needs) such high and low lines may be ± anysuitable percentage level of the middle market line. The high line inthis example is at 4404. The higher and lower betting opportunitiesrepresent constant fixed odds prices. The higher odds will be oddsagainst the current levels (a short position) and the lower odds will beodds for/supporting current levels (a long position or ‘odds-on’). Thus,in an example arrangement, a set of bets 74 a and 74 b reflect the shortand long positions for the high line. Bet 74 a includes odds of 5/1,while bet 74 b includes odds of 1/12.

The current market line is moving constantly, as a reflection of theactual market level. This is in relation to the higher or lower bettingopportunities, which remain at static fixed odds prices (approximately10/11 in this example). The current market line is 4354 and includes aset of bets 76 a and 76 b, which represent higher and lower positionsthat are both accompanied by 10/11 odds. Additionally, another set ofbets 78 a and 78 b are provided at derivations of the current marketline. These two bets are offered at levels of 4361 and 4348respectively. Thus, a second current market level (in this case wherecustomers can bet at even money) is provided and offers an opportunityto bet on whether the market will expire above or below a market spread.In this example, a thirteen point spread straddles the current marketmiddle line and offers yet another betting opportunity for end user 12.

Screen page 70 also includes a low line. This represents a constantlymoving market level that will be circa 1% (in this example) of themarket value below the current market. The higher and lower bettingopportunities reflect constant fixed odds prices in this example. Thehigher odds will be (long) odds-on and the lower odds will be (short)odds-against. Thus, a set of bets 80 a and 80 b are again provided,reflecting the higher and lower bets respectively. Additionally, theodds are 1/12 and 5/1 respectively for bets 80 a and 80 b. Otherexpiries may also be accommodated and inclusive of intraday markets,weekend markets, and monthly and/or quarterly expirations.

The high line and low line, in addition to reflecting market movements,will move over time. The spread between the high line and the marketline will grow more narrow (or closer) as the expiry draws near. This isalso true for the bet evens higher wager and the lower evens bet (bets78 a and 78 b). Thus, such lines are floating: not only in the sense ofmarket movements, but also as time progresses they will move and narrow.For example, with five minutes left to go for a wager, these lines willbe quite narrow. Thus, the high line generally comes down (while oddsremain relatively consistent) and the low line generally goes up duringthe course of the trading day. Note also that over time, as marketsclose, certain bets may be eliminated because of practical constraints.Markets generally move in whole number increments. Therefore, spreadsthat are too narrow will eliminate certain bets (e.g. bets 74 b and 80a), as the markets draw to a close. This offers some constraint on sucha scenario, whereby (for example) the high line and the low line cannotbe any closer than five or ten ticks apart.

The 1/12 and 5/1 odds bets (bets 74 b and 80 a and 74 a and 80 b)reflect odds calculations that are determined based on theircorresponding lines (i.e. 4404 and 4306). Thus, in an example wager,consider the case where end user 12 bets $100 that the FTSE will closeabove the high line (provided as 4404). This bet provides 5/1 odds(identified as bet 74 a). At the end of the trading day in this example,assume the FTSE closes at 4425. This is a winning bet. Settlement wouldthen ensue where end user 12 would collect $500 from the winning betplus his original stake, which would yield $600 total. Using the sameparameters, consider a second end user 12 that opts to wager on thelower bet. The lower bet offers 1/12 odds (identified as bet 74 b). Whenthe market closed above such a prediction (a losing bet), end user 12would lose the $100 that he bet. If, on the other hand, the FTSE closedat 4390 in this scenario, end user 12 would be rewarded with $100/12(the odds offered) plus his original stake. This would yield a return ofapproximately $108.33 for the winning bet.

As described above, the price that is being offered to end user 12,reflecting where the middle of the market is, can be provided by acommunications feed. This feed could reflect daily market conditions andeffectively encompass news flow and other financial parameters thatcould potential affect the market. Other embodiments, described morefully below, offer an owner or operator of gaming system 10 considerableflexibility in setting market lines and odds.

FIG. 3 is a simplified block diagram of an example internal structure ofcentral controller 40, which may be included within gaming system 10.Central controller 40 comprises processor 42 coupled to memory element44. Processor 42 may execute a number of applications to perform variousfeatures and functions for creating and settling a plurality financialinstruments 90. Memory element 44 may store such applications, variousincarnations of financial instruments 90, and/or any other relevantinformation associated with financial instruments 90. In a particularembodiment of the present invention, processor 42 includes an oddsdetermination module 84 that is operable to establish a number of odds(explained more fully below) for end user 12 in the context of a numberof wagering opportunities.

Financial instruments 90 are derived from a wager that is made withrespect to the outcome of one or more events associated with a financialmarket. Financial events and parameters form the basis for financialinstruments 90, which reflect wagers in selected markets. The eventsmight involve the movement or the value of a financial market index,security, or other instrument during or at the end of a predeterminedperiod of time, as described above. Such instruments may include allrelevant financial data and obligation terms associated therewith.

In operation of an example embodiment, the movement of a financialmarket may be graphically represented on an electronic screen usingsymbols such as, for example, color-coded (e.g., red, green, or yellow)arrows. Each symbol could indicate whether the value of the associatedfinancial market indicator was: 1) down during the last predeterminedperiod of time or after the last relevant transaction or transactions(e.g., red down arrow); 2) up during the last predetermined period oftime or after the last relevant transaction or transactions (e.g., greenup arrow); or 3) unchanged during the last predetermined period of timeor after the last relevant transaction or transactions (e.g., yellowhorizontal arrow). Any suitable number and combination of symbols couldrepresent a suitable portion of the history of, or the movement in, thevalue of the financial market.

Memory element 44 of central controller 40 may store informationregarding the various types of different wagers that may be placed (andtheir outcomes) in gaming system 10. Memory element 44 may also storevarious financial instruments 90 and a plurality of end-user profiles92. Memory element 44 may additionally store information associated witha financial instrument number (FIN), a description of the market(s) thatare the subject of the particular wager, a designated duration/expiry,and odds established for the particular wager. These fields (and others)may be defined in numerous ways within the scope of the presentinvention. For example, the term ‘expiry’ may refer to a particularclosing or settlement time and/or date for financial instrument 90 toclose, or it may be based on the events themselves that may be completedat some arbitrary or specific date in the future (e.g. at the closingbell).

Additionally, each end-user profile 92 may include any relevantinformation associated with end user 12, his wagering activity, or hisfinances. For example, items such as account numbers, transactionalhistory, balances, commissions, available funds, and potentialdebits/credits may be reflected in a profile. End-user profiles 92 maybe pin-accessed by end user 12 or accessed solely by an entity oradministrator authorized to do so.

Odds determination module 84 of processor 42 determines the oddsprovided to end user 12 for a particular wager. In one embodiment, thethree factors considered in setting odds are the underlying marketlevel, volatilities, and time. Volatility represents a measure ofuncertainty exhibited by the market over a given time period. Marketsgenerally follow log-normal distribution, which reflects an abstractionor theory that allows a person to reasonably approximate marketmovements. In this sense, the mathematics used to calculate odds couldbe similar to that of options pricing. In other scenarios, oddscalculations may be based on exposure for an owner/operator of gamingsystem 10. Note that a number of control parameters are provided to anadminister of gaming system 10. For example, the volatility factor maybe manipulated in response to breaking news that would most likelyaffect market levels. This judgement may be made by an administrator andreflect his own judgment and/or expertise in market theories. In otherscenarios, such news items would automatically be priced into thefinancial market.

In an alternative embodiment, odds determination module 84 determinesodds for a particular wager based on the following formula: odds=(prizevalue/risk value)*factor. Therefore, odds could be variable based (atleast in part) on the prize value and the risk value. In still otherembodiments, odds determination module 84 may use or consider any numberof influential factors to vary odds that are offered to end users 12.Any number of news items, statistical data, or events, may affect orinfluence a given market. These factors may be taken into considerationby an administrator in setting odds. Such factors may include marketnews or commentary, job data, interest rate information, commodityprices, consumer spending, consumer confidence, unemploymentinformation, economic growth, capital spending, gross domestic product(GDP) data, bond prices, or any other piece of information or data thatmay have an influential effect on a given market line. For example, adecrease in interest rates generally spawns an increase in the Dow JonesIndustrial Average (DJIA) for that trading day. Odds determinationmodule 84 may calculate odds in a systematic manner (as describedherein) and then factor in this information such that the odds aregenerally shifted to accommodate for the probability of gains in thatday's market performance. In other embodiments, such information isbuilt into the market line in a manner that is suitable to anadministrator and, therefore, such manipulations are unnecessary.

In an example scenario, consider that the S&P 500 rarely performs poorlyin an election year in the United States. Only twice in the history ofthe U.S. stock markets has the S&P 500 provided a negative return forinvestors during an election year. Thus, during an election year,control parameters may be implemented to reflect the proposition that,over the course of the year, the S&P 500 is most likely to rise.Similarly, markets tend to decline in times of war or during patterns ofinterest rate increases. In the event of a major war or in the eventthat such a pattern (of systematic interest rate increases) isidentified, an administrator could again manipulate the odds (as he seesfit) to reflect this probable downward trend.

In still other scenarios, the odds associated with a market may beestablished based on the current market line in conjunction with theproportion of money bet on that market versus the total amount of moneyaccumulated in the relevant betting pool. Because each set of oddscorresponds to a percentage, each participant is also associated with apercentage. In order to form a group of participants for a bet withouttakeout, gaming system 10 can select participants from the field ofparticipants whose percentages total an amount that corresponds to theodds. The percentage corresponding to the odds is also referred to as atarget percentage. For example, for an even money bet (i.e., targetpercentage of 50%), if the lead participant of a group of participantshas 5-2 odds and, therefore, is associated with a percentage of 28%,gaming system 10 may form the group of participants by selecting otherparticipants whose percentages total 22%, such as a participant having7-2 odds (22%); participants having 4-1 odds (20%) and 50-1 odds (2%);or participants having 7-1 odds (12%) and 9-1 odds (10%). In anotherexample, for a bet having odds of 2-1 (i.e., target percentage of 33%),if the lead participant of a group of participants has 6-1 odds and,therefore, is associated with a percentage of 14%, gaming system 10 mayform the group of participants by selecting other participants whosepercentages total 19%, such as participants having 9-1 odds (10%) and10-1 odds (9%); participants having 5-1 odds (16%) and 30-1 odds (3%);or a single other participant having 9-2 odds (18%) or 4-1 odds (20%).

As the number of participants in an event and the odds for particularparticipants in an event vary, it may be difficult to assemble a groupof participants with a total percentage of exactly the targetpercentage. Therefore, an administrator of gaming system 10 may attemptto form a group of participants having a total percentage as close tothe target percentage as possible. In a particular embodiment, gamingsystem 10 (e.g. via odds determination module 84) may establish apercentage threshold to be used to determine whether odds bets may beoffered for a particular event. For example, gaming system 10 mayestablish a threshold that is three percentage points above or below thetarget percentage. In this example, gaming system 10 offers an odds betif the total percentage for the group of participants is within threepercentage points above or below the target percentage. Where no oddsbet is established in this scenario, gaming system 10 may convert anodds bet into a straight odds bet for the lead participant. Gamingsystem 10 may attempt to form the group of participants using anysuitable number and combination of participants in the field of endusers 12.

Note that in still other scenarios, the market line may be static orfixed over a given time period, whereby the odds may be varied in orderto tempt an end user or to solicit additional betting. For example, ifthe FTSE shoots up 300 points to a level of 5000 in morning trading, theodds can be varied significantly (e.g. 50/1 or 100/1) in order to enticepeople to bet that the FTSE will close below the original market line.This is an unlikely occurrence. Other unlikely occurrences (involvingthe appreciation or depreciation of corresponding markets) may bereadily appreciated and are, thus, clearly within the scope of theteachings of gaming system 10.

In the example provided above, the original market line (when the FTSEopened) was 4700. Thus, if the FTSE were at a level of 5000, odds wouldhave to be attractive enough to persuade a potential bettor to engage ina wagering opportunity involving a significant decline in the FTSE.Thus, long odds prices can be generated in order to lure punters (i.e.bettors) to bet. Market odds could be refreshed several times per day inorder to provide new betting opportunities.

Odds determination module 84 may be employed in order to determine oddsfor this configuration. Additionally, administrator module 50 may alsoparticipate in such a process in order to establish appropriate odds orto refresh the gaming environment to offer new betting opportunities. Inother scenarios, any suitable element within gaming system 10 may beimplemented to achieve a static market line arrangement, inclusive ofthe ability to vary odds that are used to entice bettors.

FIG. 4 is a simplified flowchart illustrating a series of example stepsassociated with a method for wagering in a financial market environment.The method may begin at step 100 where financial instrument 90 iscreated based on numerous factors, such as the market line that is thesubject of the instrument, a volatility factor, the duration or expiryof the instrument, and the corresponding odds. At step 102, the terms offinancial instrument 90 may then be adequately displayed to end user 12such that he may ratify the proposed wager before committing to theobligation.

At step 104, an authorized entity (or a computer program) may monitorthe financial market value underlying financial instrument 90. Updatesmay be provided to end user 12, whereby such updates are based onreal-time market data associated with those underlying financialmarkets. A given end user 12 may have a number of bets active at anygiven time. For example, end user 12 may be betting on an overall risein the NASDAQ market (having a daily expiry), as well as a reduction(short position) in the German DAX (having a five-minute expiry).

At step 106, any relevant information may be broadcast to end users 12of gaming system so that they may be apprised of the changing value oftheir financial instruments 90 or of news that may impact theirpositions. For example, market level data, employment numbers, and/orGDP statistics may be provided to end users 12. Other informationprovided may simply update the projected value of financial instrument90 based on current market conditions. An administrator of gaming system10 may ignore this information or use it to offer new bettingopportunities for potential gamers. These opportunities may be readilydisplayed to end users 12 such that they may participate in even morewagering opportunities through gaming system 10.

At step 108, financial instrument 90 expires at a designated timeinterval. Settlement may be immediate (e.g. via a debit or credit to anend-user account) or prolonged in cases where end user 12 has beenextended some amount of credit. In other cases (where the relationshipbetween end user 12 and an administrator is more reliable), paymentscould be simply mailed or communicated electronically by anauthoritative entity, or by end user 12 where a loss was incurred.Settlement may be achieved in any number of ways and based on particularneeds.

Note that the example flowchart of FIG. 4 has been offered for purposesof teaching only. Accordingly, some of these steps may be changed,rearranged, deleted, or replaced with other steps where appropriate.Such modifications may be based on particular wagering needs or specificbetting and gaming architectures and configurations. Such derivationsare within the teachings of the present invention.

As described above, the elements and operations listed in FIGS. 1through 4 may be achieved with use of gaming system 10 in any number ofcontexts and applications. Accordingly, communications capabilities,data processing elements, suitable infrastructure, adequate personneland management, and any other appropriate software, hardware, or datastorage objects may be included within gaming system 10 to effectuatethe tasks and operations of activities associated with placing a wager.Accordingly, the preceding FIGURES provide only some examples ofsuitable processing and communications platforms from which a wager maybe offered.

Although the present invention has been described in detail withreference to particular embodiments in FIGS. 1 through 4, it should beunderstood that various other changes, substitutions, and alterationsmay be made hereto without departing from the sphere and scope of thepresent invention. For example, end user 12 may be given the opportunityto bet on a rise or decline in price of a single security that is apublicly traded company. Thus, end user 12 could bet on whether theshare price of Cisco, Systems (NASDAQ: CSCO) would rise or fall during agiven time interval. Moreover, such a wagering opportunity could beaccompanied by the eight bets as set forth previously with reference toFIG. 2. In still other scenarios, a suitable financial vehicle could beassociated with commodities (e.g. gold, silver, wheat, corn, etc.),futures contracts, bonds, money markets, or any other suitable assetthat is subject to some fluctuation and, thereby, speculation by enduser 12.

Numerous other changes, substitutions, variations, alterations, andmodifications may be ascertained to one skilled in the art and it isintended that the present invention encompass all such changes,substitutions, variations, alterations, and modifications as fallingwithin the spirit and scope of the appended claims. In order to assistthe United States Patent and Trademark Office (USPTO) and additionallyany readers of any patent issued on this application in interpreting theclaims appended hereto, Applicant wishes to note that the Applicant: (a)does not intend any of the appended claims to invoke paragraph six (6)of 35 U.S.C. section 112 as it exists on the date of filing hereofunless the words “means for” are specifically used in the particularclaims; and (b) does not intend by any statement in the specification tolimit his invention in any way that is not otherwise reflected in theappended claims.

1. A method for wagering in a financial market environment, comprising:presenting an opportunity to make a wager that is based on a movingmarket line associated with a financial market, wherein an end user isgiven an opportunity to bet on whether a financial market value will beabove or below the moving market line at a designated time; acceptingthe wager from the end user; and monitoring the wager in order todetermine whether the financial market value was above or below themoving market line at the designated time.
 2. The method of claim 1,further comprising: offering the wager in a financial instrument thatincludes one or more terms associated with the wager, wherein the termsinclude a selected one or more of a price associated with the wager,odds associated with the wager, and an expiration of the wager.
 3. Themethod of claim 1, further comprising: providing a user interface forthe end user, the user interface being operable to receive input inorder to facilitate participation in the wager by the end user.
 4. Themethod of claim 1, further comprising: providing data associated withthe wager to the end user in order to assist the end user inparticipating in the wager.
 5. The method of claim 4, wherein the datarelates to historical information about the financial market valueassociated with the wager.
 6. The method of claim 1, further comprising:establishing a high line that corresponds to an increase in the movingmarket line, wherein the end user is given an opportunity to place ahigh line wager in order to bet on whether the financial market valuewill reach below or above the high line during a specified time period.7. The method of claim 1, further comprising: establishing a low linethat corresponds to a decrease in the moving market line, wherein theend user is given an opportunity to place a low line wager in order tobet on whether the financial market value will reach below or above thelow line during a specified time period.
 8. The method of claim 1,further comprising: establishing a spread that corresponds to adeviation above and below the moving market line, wherein the end useris given the opportunity to place a spread wager in order to bet onwhether the financial market value will reach below or above the spreadduring a specified time period.
 9. The method of claim 1, furthercomprising: providing one or more end-user profiles for one or more endusers participating in one or more wagers, wherein one or more of theend-user profiles include a selected one or more of an account numberassociated with one or more of the end users, identity informationassociated with one or more of the end users, and data associated withrecent wagering activity for one or more of the end users.
 10. Themethod of claim 1, further comprising: administering a gaming systemthat includes a platform for facilitating the wager associated with thefinancial market value, wherein the administering operation includesapproving one or more wagers placed on margin by one or more end users.11. The method of claim 1, further comprising: settling the wager afterin order to resolve whether the end user is entitled to a credit or adebit.
 12. A system for wagering in a financial market environment,comprising: a central controller operable to present an opportunity tomake a wager that is based on a moving market line associated with afinancial market, wherein an end user is given an opportunity to bet onwhether a financial market value will be above or below the movingmarket line at a designated time, and wherein the central controller isfurther operable to accept the wager from the end user, the wager beingmonitored in order to determine whether the financial market value wasabove or below the moving market line at the designated time.
 13. Thesystem of claim 12, wherein the central controller comprises: aprocessor; and a memory element that is operable to store the wager as afinancial instrument, the financial instrument including one or moreterms associated with the wager, wherein the terms include a selectedone or more of a price associated with the wager, odds associated withthe wager, and an expiration of the wager.
 14. The system of claim 13,wherein the memory element is operable to provide one or more end-userprofiles for one or more end users participating in one or more wagers,and wherein one or more of the end-user profiles include a selected oneor more of an account number associated with one or more of the endusers, identity information associated with one or more of the endusers, and data associated with recent wagering activity for one or moreof the end users.
 15. The system of claim 12, further comprising: afinancial market data element that is operable to provide dataassociated with the wager to the end user in order to assist the enduser in participating in the wager.
 16. The system of claim 12, whereinthe central controller is operable to establish a high line thatcorresponds to an increase in the moving market line, and wherein theend user is given an opportunity to place a high line wager in order tobet on whether the financial market value will reach below or above thehigh line during a specified time period.
 17. The system of claim 12,wherein the central controller is operable to establish a low line thatcorresponds to a decrease in the moving market line, and wherein the enduser is given an opportunity to place a low line wager in order to beton whether the financial market value will reach below or above the lowline during a specified time period.
 18. The system of claim 12, whereinthe central controller is operable to establish a spread thatcorresponds to a deviation above and below the moving market line, andwherein the end user is given the opportunity to place a spread wager inorder to bet on whether the financial market value will reach below orabove the spread during a specified time period.
 19. The system of claim12, further comprising: a user interface operable to communicate withthe central controller, the user interface being further operable toreceive input in order to facilitate participation in the wager by theend user.
 20. The system of claim 12, further comprising: anadministrator module operable to communicate with the central controllerand to approve one or more wagers placed on margin by one or more endusers.
 21. Software for wagering in a financial market environment, thesoftware being embodied in a computer readable medium and comprisingcomputer code such that when executed is operable to: present anopportunity to make a wager that is based on a moving market lineassociated with a financial market, wherein an end user is given anopportunity to bet on whether a financial market value will be above orbelow the moving market line at a designated time; accept the wager fromthe end; and monitor the wager in order to determine whether thefinancial market value was above or below the moving market line at thedesignated time.
 22. The medium of claim 21, wherein the code is furtheroperable to: provide historical data associated with the financialmarket value to the end user in order to assist the end user inparticipating in the wager.
 23. The medium of claim 21, wherein the codeis further operable to: establish a high line that corresponds to anincrease in the moving market line, wherein the end user is given anopportunity to place a high line wager in order to bet on whether thefinancial market value will reach below or above the high line during aspecified time period.
 24. The medium of claim 21, wherein the code isfurther operable to: establish a low line that corresponds to a decreasein the moving market line, wherein the end user is given an opportunityto place a low line wager in order to bet on whether the financialmarket value will reach below or above the low line during a specifiedtime period.
 25. The medium of claim 21, wherein the code is furtheroperable to: establish a spread that corresponds to a deviation aboveand below the moving market line, wherein the end user is given theopportunity to place a spread wager in order to bet on whether thefinancial market value will reach below or above the spread during aspecified time period.
 26. The medium of claim 21, wherein the code isfurther operable to: administer a gaming system that includes a platformfor facilitating the wager associated with the financial market value,wherein the administering operation includes approving one or morewagers placed on margin by one or more end users.
 27. The medium ofclaim 21, wherein the code is further operable to: settle the wager inorder to resolve whether the end user is entitled to a credit or adebit.
 28. A system for wagering in a financial market environment,comprising: means for presenting an opportunity to make a wager that isbased on a moving market line associated with a financial market,wherein an end user is given an opportunity to bet on whether afinancial market value will be above or below the moving market line ata designated time; means for accepting the wager from the end user; andmeans for monitoring the wager in order to determine whether thefinancial market value was above or below the moving market line at thedesignated time.
 29. The system of claim 28, further comprising: meansfor providing the wager in a financial instrument that includes one ormore terms associated with the wager, wherein the terms include aselected one or more of a price associated with the wager, oddsassociated with the wager, and an expiration of the wager.
 30. Thesystem of claim 28, further comprising: means for receiving input inorder to facilitate participation in the wager by the end user.
 31. Thesystem of claim 28, further comprising: means for providing historicaldata associated with the financial market value to the end user in orderto assist the end user in participating in the wager.
 32. The system ofclaim 28, further comprising: means for establishing a high line thatcorresponds to an increase in the moving market line by approximately1%, wherein the end user is given an opportunity to place a high linewager in order to bet on whether the financial market value will reachbelow or above the high line during a specified time period.
 33. Thesystem of claim 28, further comprising: means for establishing a lowline that corresponds to a decrease in the moving market line byapproximately 1%, wherein the end user is given an opportunity to placea low line wager in order to bet on whether the financial market valuewill reach below or above the low line during a specified time period.34. The system of claim 28, further comprising: means for establishing aspread that corresponds to a deviation above and below the moving marketline, wherein the end user is given the opportunity to place a spreadwager in order to bet on whether the financial market value will reachbelow or above the spread during a specified time period.
 35. The systemof claim 28, further comprising: means for providing one or moreend-user profiles for one or more end users participating in one or morewagers, wherein one or more of the end-user profiles include a selectedone or more of an account number associated with one or more of the endusers, identity information associated with one or more of the endusers, and data associated with recent wagering activity for one or moreof the end users.
 36. The system of claim 28, further comprising: meansfor administering a gaming system that includes a platform forfacilitating the wager associated with the financial market, wherein theadministering operation includes approving one or more wagers placed onmargin by one or more end users.
 37. The system of claim 28, furthercomprising: means for settling the wager in order to resolve whether theend user is entitled to a credit or a debit.
 39. A method for wageringin a financial environment, comprising: presenting an opportunity tomake a wager that is based on a static market line associated with afinancial market, wherein an end user is given an opportunity to bet onwhether a financial market value will be above or below the staticmarket line at a designated time, and wherein odds for the wager aredetermined based on movement of the financial market value; acceptingthe wager from the end user; and monitoring the wager in order todetermine whether the financial market value was above or below thestatic market line at the designated time.
 40. The method of claim 39,further comprising: establishing one or more additional static lines;and providing additional odds for the one or more additional staticlines based on movement of the financial market value such that one ormore additional betting opportunities are provided to the end user. 41.The method of claim 39, further comprising: offering the wager in afinancial instrument that includes one or more terms associated with thewager, wherein the terms include a selected one or more of a priceassociated with the wager, the odds associated with the wager, and anexpiration of the wager.